Previously

The health-insurance cooperative that has supplied benefits to San Diego Unified School District without competitive bids for almost 20 years has sent its board members to New Orleans and Las Vegas - trips that were not reported on state-mandated disclosure forms.

The 16 board members represent administration and labor interests at school districts throughout the county that use the co-op’s services.

The Watchdog began requesting documents from the quasi-public group after learning that a Los Angeles firm believed it could provide the same benefits to San Diego Unified for $10 million less per year.

In response to a story earlier this month, the school board ordered up an analysis of benefits it gets from the cooperative, known as the California Schools Voluntary Employees Benefits Association.

The nonprofit trust has withheld certain records from disclosure, arguing that it is a private association, not a public agency.

This led The Watchdog to review state-mandated forms for the agency’s board members, to see whether travel and other benefits bestowed on them by the private group were disclosed as gifts or income.

Nine of the co-op’s board members are mandated to disclose economic interests because they are in decision-making positions at their school district.

The board members have traveled by the busload to Las Vegas for training, according to George McGregor, the group’s general manager. He said it saves money on airfare.

In response to inquiries from The Watchdog, the agency’s Los Angeles attorney recommended that board members should begin reporting such trips on the state disclosure forms - going forward, and also by amending past filings.

The attorney, Hirsch Adell, said the law makes clear that travel reimbursements are not reportable gifts.

“However, your inquiry caused a review that indicated such reimbursements may be listed on the form under ‘income’ as it is defined under the Government Code,” he wrote by email.

Board members had not reported trips funded by the agency previously.

“I did not put this travel on my original Form 700 as I had been advised that it was not a gift as I was traveling to fulfill my board responsibility,” said Kevin Ogden, the Julian Union superintendent who serves on the VEBA board.

Ogden has amended his most recent disclosure to report a $3,230 conference in New Orleans last fall and $325 he was reimbursed for food and lodging expenses related to a VEBA symposium.

Complimentary iPads issued to VEBA board members remain unreported because trustees say the equipment will be returned to the organization upon completion of their board service.

State officials welcome amendments to public disclosure forms that include previously non-reported gifts or income. Gary Winuk, chief of enforcement for the state Fair Political Practices Commission, said officials should disclose any gifts or income that may have a direct bearing on their decision-making as public officials.

“We’re not going to comment on this (VEBA) specifically because we may take a look at it,” he said.

VEBA is a nonprofit trust organized by member school districts to provide the best benefits to employees at the lowest cost. Each VEBA member district pays into the trust, which has hired a contractor to arrange health services for more than 88,000 employees and dependents.

The question of whether VEBA is a public agency is important because public agencies must conduct business in the open and provide contracts, billings and other records to anyone who requests them. The group administers $355 million in public funds.

State law defines a public agency as any body that “receives funds from a local agency and the membership of the governing body includes a member of the legislative body.”

A spokeswoman for the Attorney General’s Office declined to specify whether a voluntary benefits association is a public agency.

Terry Francke of the open-government group Californians Aware said even if VEBA officials do not consider the trust a public agency, they should disclose documents for their business and work that’s contracted out.

“Those that don’t are legitimately open to the suspicion that one of the main reasons for contracting out is to put these accountability data beyond the public’s reach,” he said.